The 2020 American Economic Journal: Applied Economics Best Paper Prize have been awarded to CEBI researchers
Jakob Egholt Søgaard and Henrik Kleven (together with Camille Landais) for the paper "Children and Gender Inequality: Evidence from Denmark."
In the paper they examine labor data from Denmark to compare how the birth of a child affected the careers of men and women differently. The effects are substantial and lasts for many years, creating a long-run earnings gap of around 20 percent. But this "child penalty" isn’t just about a smaller paycheck—it influences where new mothers choose to work and diminishes promotion opportunities. The paper shows that the negative effects of children on careers of women compared to careers of men are large and have not fallen over time. (AEJ: Applied Economics, Vol 11, No. 4, October 2019.)